KUALA LUMPUR: Malaysian palm oil futures rose for a fourth consecutive session on Thursday, trading at highs last seen over a year ago, as stronger rival edible oils and crude oil prices underpinned the market.
The benchmark palm oil contract for May delivery on the Bursa Malaysia Derivatives Exchange gained 101 ringgit, or 2.41%, to 4,296 ringgit ($916.97) during early trade.
Palm oil closes at highest level in over a year
The contract closed at its highest levels since March 9, 2023 on Wednesday.
Fundamentals
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Dalian’s most-active soyoil contract rose 2.06%, while its palm oil contract added 3.34%. Soyoil prices on the Chicago Board of Trade were up 0.64%.
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Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
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Oil extended gains in Asian trade on Thursday after a surprise drop in US crude stockpiles indicated strengthening demand, while possible supply disruptions following Ukrainian attacks on Russian refineries also underpinned prices.
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Stronger crude oil futures make palm a more attractive option for biodiesel feedstock.
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Malaysia’s palm oil stocks at the end of February dwindled to their lowest levels in seven months as production hit a 10-month low, offsetting the slowdown in exports.
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Inventories at the end of last month fell 5% to 1.92 million metric tons from levels seen in January, crude palm oil production declined 10.18% to 1.26 million tons, while exports plunged 24.75%, data from industry regulator the Malaysian Palm Oil Board showed on Monday.
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India’s palm oil imports plunged to their lowest level in nine months in February, as higher prices prompted buyers to reduce purchases of the tropical oil in favour of rival sunflower oil, a leading trade body said on Wednesday.
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